Optiva Inc (OPT) AI Stock Analysis

• Market Cap: C$4.36M
• Dividend Yield: N/A
• Average Volume (3M): 11.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 4.13%
• EPS Growth: -5.54%
• Country: CA
• Employees: 413
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): -1.10
• Shares Outstanding: 6,226,043
• 10 Day Avg. Volume: 17,064
• 30 Day Avg. Volume: 11,148
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.50
• Price Target Upside: -27.54% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: C$0.50 ▼(-27.54% Downside)

Optiva Inc's overall stock score reflects significant financial challenges, including declining revenue, negative equity, and poor valuation metrics. While technical indicators signal bearish momentum, recent corporate events show potential for strategic improvement. However, financial restructuring poses risks to shareholder value.

Optiva Inc Business Overview & Revenue Model

Company Description

Optiva Inc (OPT) is a leading provider in the telecommunications sector, specializing in software solutions for communication service providers (CSPs). The company offers a comprehensive suite of products that facilitate business operations, customer management, and service delivery. Their core offerings include cloud-native software solutions that enable CSPs to rapidly monetize new services, enhance customer experiences, and improve operational efficiency.

How the Company Makes Money

Optiva Inc makes money primarily through the sale of its software solutions and associated services to communication service providers. The company's revenue model is based on software licensing, maintenance and support contracts, and professional services. Optiva generates income by licensing its cloud-native software on a subscription basis, allowing CSPs to deploy and scale services. Additionally, the company earns revenue through professional services, which include consulting, implementation, and customization of its software solutions. Strategic partnerships with major telecommunications companies and technology providers also contribute to Optiva's revenue by expanding its market reach and enhancing its service offerings.

Optiva Inc Financial Statement Overview

Summary

Optiva Inc faces substantial financial challenges. Declining revenue and persistent losses highlight significant profitability issues. Negative equity and high leverage on the balance sheet pose financial risks, while cash flow improvements are minimal. The company needs strategic initiatives to enhance revenue growth, improve cost efficiencies, and strengthen its financial position to ensure long-term sustainability.

Income Statement

Optiva Inc's income statement reveals significant challenges with declining revenue and profitability. Revenue has decreased from $96.7M in 2019 to $47.1M in 2024, reflecting a negative growth trend. Gross profit margin has substantially dropped from 67.5% in 2019 to 57.9% in 2024. The company has struggled with consistent net losses, with net income falling from a loss of $11M in 2019 to a loss of $19.7M in 2024. EBIT and EBITDA margins are negative, indicating operational inefficiencies. The company's profit margins have been notably volatile, reflecting potential challenges in cost management and market competitiveness.

Balance Sheet

Optiva Inc's balance sheet indicates financial instability, characterized by negative stockholders' equity, which has worsened from -$35.6M in 2019 to -$56.7M in 2024. The company's debt-to-equity ratio is not calculable due to negative equity, but the high total debt of $102.7M in 2024 suggests significant leverage. Return on Equity is also not meaningful due to negative equity, highlighting profitability challenges. The equity ratio is negative, indicating that liabilities exceed assets, posing a risk to financial health and sustainability.

Cash Flow

The cash flow analysis of Optiva Inc shows mixed performance. Operating cash flow has improved to a positive $415K in 2024 from a negative $3.25M in 2023, signifying some operational recovery. However, free cash flow remains low at $37K in 2024, indicating limited cash available for expansion or debt reduction. The operating cash flow to net income ratio is positive but not strong, reflecting ongoing profitability pressures. Overall, cash flow management remains an area for improvement to support long-term financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.08M	47.51M	61.78M	65.24M	75.92M
Gross Profit	27.25M	30.61M	44.59M	50.36M	56.31M
EBITDA	-8.21M	-239.00K	13.85M	33.08M	-20.16M
Net Income	-19.68M	-12.26M	709.00K	18.50M	-41.52M
Balance Sheet
Total Assets	70.14M	84.31M	86.62M	92.66M	77.38M
Cash, Cash Equivalents and Short-Term Investments	10.22M	19.64M	18.39M	29.59M	17.66M
Total Debt	102.70M	101.35M	87.72M	86.99M	86.34M
Total Liabilities	126.88M	123.60M	112.70M	127.72M	156.81M
Stockholders Equity	-56.74M	-39.29M	-26.08M	-35.06M	-79.43M
Cash Flow
Free Cash Flow	37.00K	-3.64M	-1.09M	1.59M	-7.90M
Operating Cash Flow	415.00K	-3.25M	-237.00K	2.65M	-7.90M
Investing Cash Flow	-428.00K	760.00K	-2.01M	-1.22M	325.60K
Financing Cash Flow	-10.10M	3.95M	-8.78M	10.89M	-7.52M

Optiva Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OPT, the sentiment is Negative. The current price of 0.69 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 1.22, and below the 200-day MA of 2.62, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 35.17 is Neutral, neither overbought nor oversold. The STOCH value of 22.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OPT.

Optiva Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$36.26B	7.12	-7.27%	1.97%	7.78%	-8.61%
EONX	57 Neutral	C$15.78M	―	20.16%	―	79.84%	70.95%
NBVA	45 Neutral	C$5.26M	140.00	0.79%	―	-74.44%	―
OPT	40 Underperform	C$4.36M	―	36.35%	―	4.13%	-5.54%
PKK	36 Underperform	C$5.57M	―	-224.98%	―	-85.42%	51.62%
VENZ	27 Underperform	$4.27M	―	-1003.70%	―	―	-24.90%

Optiva Inc Corporate Events

Optiva Inc. Shows Growth Amid Financial Challenges in Q2 2025

Optiva Inc. reported its second quarter 2025 financial results, highlighting a revenue of $10.3 million and a gross margin of 49%. Despite an adjusted EBITDA loss of $1.6 million, the company demonstrated growth in bookings with a total contract value of $26.6 million. Optiva secured new contracts with a Tier 1 European MVNO and telecom, and renewed a multi-year agreement with a key customer. The company is also in negotiations for a strategic transaction, supported by 85% of noteholders, and expects to finalize a binding agreement soon. Optiva’s continued innovation is recognized with a finalist nomination for the Leading Lights Awards.

Optiva Inc. Enters Strategic Negotiations Amidst Financial Restructuring

Optiva Inc. has entered into a support agreement with holders of approximately 85% of its outstanding senior secured notes, granting a 45-day grace period to negotiate a potential transaction involving the exchange of notes for shares and new notes of a merged strategic third party. This agreement allows Optiva to continue its operations without disruption, maintaining commitments to stakeholders, while exploring a merger that could impact shareholder value, as common shareholders are expected to receive nominal consideration.

Optiva Inc. Strengthens Board and Reappoints Auditor at Annual Meeting

Optiva Inc. announced the election of six directors to its board and the reappointment of KPMG LLP as its auditor at its annual meeting. These decisions are expected to strengthen the company’s governance and financial oversight, potentially enhancing its strategic positioning in the telecom industry.

Optiva Inc. Addresses Unexplained Market Activity

Optiva Inc. has addressed recent market activity, confirming that it is unaware of any undisclosed information that would explain the increase in its stock price and trading volume. This announcement aims to reassure stakeholders and maintain transparency amidst the fluctuations in its market performance.

Optiva Inc. Wins MVNOs World AI & Analytics Excellence Award for AI-Driven BSS Platform

Optiva Inc. has been awarded the MVNOs World AI & Analytics Excellence Award for its AI-driven BSS platform, which is powered by Google’s Gemini Models. The platform is recognized for empowering MVNEs and MVNOs to launch and configure eSIM enablement and advanced product catalogs swiftly. This award highlights Optiva’s innovative partnerships and its role in enhancing agility, scalability, and customer-centric offerings in the competitive telecom market. The platform’s AI capabilities, such as churn prediction and dynamic pricing, allow operators to accelerate time-to-market and optimize growth strategies, ultimately improving customer experience and operational efficiency.

Optiva Unveils Dynamic Pricing Solution to Revolutionize Telecom Monetization

Optiva Inc., in collaboration with PlektonLabs and Qeema, announced the INFINITY project, which will be showcased at DTW25 Ignite. This project introduces a dynamic pricing solution that allows telecom operators to adapt pricing in real-time based on network utilization and customer demand, thereby unlocking new revenue streams and optimizing network capacity. By leveraging APIs and AI-driven tools, INFINITY aims to transform telecom monetization, enabling operators to move beyond static pricing models and capitalize on advanced network features. This initiative is expected to enhance operators’ ability to meet evolving customer expectations and improve profitability.